AMR Corp.'s (AMR) American Airlines, part of the Oneworld group, is planning to join hands with private-equity firm TPG Inc. to pump in about $300 million into group partner Japan Airlines Corp. (JALSF.PK, JALSY.PK), reports said.
Japan Airlines, Asia's biggest carrier by sales, has been incurring losses in the past few years and needs investment and government support for survival.
AMR Chief Financial Officer Tom Horton reportedly said that any cash infusion by TPG would be contingent upon approval by the airline and the government of Japan.
American Airlines Chairman and CEO Gerard Arpey, who is also chairman of the oneworld Board of Governors, Monday reaffirmed his commitment to retain Japan Airlines as a valued partner and equal member within the Oneworld group.
The troubled Japanese carrier is being wooed by Delta Air Lines Inc (DAL), part of the SkyTeam alliance.
An alliance with Japan Airlines would help both American and Delta gain the Japanese carrier's route network in Japan and China.
TPG has made several successful investments in airlines in the past, including in Continental Airlines (CAL).
AMR closed Wednesday's regular trade at $5.86, down $0.27 or 4.83%, on 11.66 million shares.
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